Section 203 - Key Managerial Personnel (other than CS)
Section: Section 203 of the Companies Act, 2013.
Purpose: The purpose of this section is to require companies to appoint key managerial personnel (KMP) who are responsible for important decision-making in the company.
Applicability: This section is applicable to all companies registered under the Companies Act, 2013, with a paid-up share capital of Rs. 10 crore or more.
Timeline: Companies must appoint KMPs within six months of their incorporation or within six months of the commencement of this section, whichever is later.
Exemption: No exemption is provided under this section.
Penalty: If a company fails to comply with the provisions of this section, the company and every officer in default shall be liable to a penalty of up to Rs. 5 lakhs.
Due date: The due date for appointment of KMPs is within six months of incorporation or within six months of the commencement of this section, whichever is later.
Forms: File form DIR-12 within 30 days from the board meeting in which appointment is approved. (Form DIR-12) In case of appointment of MD/WTTD/Manager, file form MR-1 within 60 days from the date of appointment. (Form MR-1)
Reporting Authority: Companies are required to report the appointment of KMPs to the Registrar of Companies (ROC) within 30 days of the appointment.
